Private Placement
Sale of securities directly to qualified investors without public offering registration - the primary method for issuing CrossSecurities on Sails.to.
Full Definition
A private placement is the sale of securities to a select group of qualified investors rather than through a public offering. Unlike IPOs or public bond issuances, private placements don't require SEC registration, allowing faster execution and lower costs.
CrossSecurities are issued via private placement under Regulation D (for US accredited investors) and Regulation S (for non-US professional investors). The $150,000 minimum investment helps ensure all participants meet qualification thresholds.
Why It Matters
Private placement enables companies to raise capital efficiently without the expense and regulatory burden of public offerings. For investors, it provides access to opportunities not available on public markets - often with higher yields and more favorable terms.
The tradeoff is restricted liquidity and investor qualification requirements. Sails.to addresses the liquidity issue through our multi-broker OTC network for secondary trading.
Related Terms
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